We now have the lowest percentage of adult males working since the last Republican Great Depression. Mitt Romney came out this week with his bold new plan for creating jobs; still more tax cuts for business and the elimination of government regulations. No matter that corporations already pay little if any taxes, that they are sitting on more than two trillion in cash and can borrow all the money they want for tenths of a percent interest.
With factories operating at 80% capacity and consumer spending showing only 0.8% growth, there is simply no reason for any business to expand. Indeed it would be foolhardy to do so if they operate on the assumption that Romney will be President. This weeks polls however show Obama edging out Romney and beating Perry by several points. In a purely hypothetical race between Obama and a generic Republican, Obama would lose. This would be a Republican like the ones people imagine still exist, but doesn’t, Eisenhower died a long time ago.
Personal incomes increased 0.3 percent in July, according to the Commerce Department. This is slightly higher than the modest 0.2 percent in June, which was the slowest growth in seven months. While these numbers are weak, they are positive and any sort of real stimulus would show immediate results as pent up demand would be released by a positive outlook among consumers.
Ten year Treasury notes touched the 1.9% interest mark in trading today, setting a new record low. This would be a great time to spend a trillion dollars on infrastructure projects but this is only a third of what is needed to bring us back to 1980. We could start taxing the people who have so much money that they will take that level of interest and call it good, but that would hurt the “job creators“. Most particularly a tax hike would cut into the multi-million dollar salaries of TV “journalists”, so it is never given serious consideration.
Everybody knows that consumer spending is 70% of the economy, but thing that only rich Republicans know is that almost 40% of that spending comes exclusively from the rich. We are operating two economies, one for the lifestyles of the rich and famous and one for the bulk of society moving steadily towards the world of Charles Dickens.
Republicans have no incentive to make things better for the average American and in fact they are determined to eliminate the middle class entirely. It doesn’t affect “their economy” if twenty percent are unemployed or even if millions starve. Americans have been “educated” to accept that they no longer have a right to make a living in America, or that this right ever existed at all. Only the “job creators” have rights and guarantees of prosperity as they are the only men who “are created equal”. The rest of us are created to serve them until we are no longer needed. www.prairie2.com